It looked like another quiet........>

US TSYS SUMMARY: It looked like another quiet morning before tensions between

China and the U.S. escalated anew: this time Washington ordered the Chinese

consulate in Houston closed, to which Beijing threatened retaliation (Rtrs

reported China considering closing the U.S. consulate in Wuhan).

- Those headlines crossed a little after 0300ET, and with a bit of delayed

reaction sent Tsys to session highs, with the curve flattening modestly.

- That 0300-0400ET period saw about 1/3 of overnight volume, ~180k TYU0 traded

all day. We've settled down since then but still a risk-off atmosphere prevails.

- Sep 10-Yr futures (TY) up 3.5/32 at 139-20 (L: 139-15.5 / H: 139-21)

- The 2-Yr yield is down 0.2bps at 0.1391%, 5-Yr is down 0.3bps at 0.2612%,

10-Yr is down 1.2bps at 0.5889%, and 30-Yr is down 2bps at 1.2886%.

- Equities lower, though off worst levels. Dollar has reversed most risk-off

gains, now trading weakest since Oct 2018 vs EUR.

- In supply, Tsy sells $17bln of re-opened 20-Yrs at 1300ET.

- Fairly light day of data, again: Jun existing home sales at 1000ET.